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Technology Stocks : Altaba Inc. (formerly Yahoo) -- Ignore unavailable to you. Want to Upgrade?


To: Typhoon who wrote (22584)7/7/1999 7:50:00 PM
From: Jan Garrity Allen  Read Replies (1) | Respond to of 27307
 
YAHOOHOOHOOHOO!!!!<<;-))))))))))Now announce a split!!!!!!! YIIIPPPEEE!!!!



To: Typhoon who wrote (22584)7/7/1999 8:29:00 PM
From: Gary Wisdom  Read Replies (1) | Respond to of 27307
 
Typhoon, get ready to buy stock to cover those calls real quick. Look at the yahoo chart. It's poised for an upward breakout. 30MM shares sold yesterday and today. Talk to the guy that shorted 100,000 AOL at $100 ( I know, I watched it). He's a hurting buckaroo now. If you don't want to buy stock, you'll pay up to cover those short calls. Never, ever short a beast. And Yahoo is a beast. My guess is it'll open 10 points higher tomorrow and never look back. You watch.



To: Typhoon who wrote (22584)7/7/1999 8:33:00 PM
From: Lucinos  Respond to of 27307
 
Typhoon,

I don't think the after earning sell-off will happen again so
significantly this time. First of all, the run-up before earning
was not as much as it was in Jan and Apr. Secondly, if it does
happen again, it will form a perfect head and shoulder pattern on
Yahoo's chart. Based on the pattern, anybody will make easy money
by selling or shorting the stocks. However, there is no free lunch
on the WS. The easy money is always hard to earn.

All those big guys that are still holding the stocks will try every
methods to prevent the head and shoulder pattern from showing up on
the chart in the next two to three weeks (although it may happen
latter). Besides, there will still be some shorts covered before
the option expiration. Just my thought.

Lucinos



To: Typhoon who wrote (22584)7/7/1999 9:01:00 PM
From: FlameMe  Read Replies (2) | Respond to of 27307
 
Typhoon,
You shorted naked Yahoo calls before earnings in order to make $5.75 per option?? Talk about major risk for limited upside!! There has got to be an easier way to make $5.75. Be careful out there!

Regards,
Ross



To: Typhoon who wrote (22584)7/8/1999 12:42:00 AM
From: Mark Pritikin  Read Replies (2) | Respond to of 27307
 
<<I shorted 5 yhoo july 180 calls for 5 3/4 naked>> I was doing this last year and was successful about 6 times in a row until I watched AMZN go from 130 to 220 in about 5 days after first announcing adding gifts in time for X-mas and then a 3 for 1 split.

Be careful--This is not a good strategy! Keep this story in mind next time you consider naked calls on Internet stocks:

I had sold 20 AMZN calls with a 150 ex. price when the stock was around 125 and covered somewhere around 158+ for a loss of about 20K. After covering, the price immediately soared to over 220 in a classic short squeeze. The DAY BEFORE option expiration the company announces a 3 for 1 stock split. They do this knowing that the current stock price was higher that ALL outstanding call option strikes. This meant that anyone that was short calls had to cover or buy the stock back buy back because there was no more stock to short. I know this because I called Fidelity to see what my options were--when I was told there was no stock to short and that if did not cover the option it would result in a market order to buy on Monday, I immediately covered on Thursday. The stock went up something like 40 Friday and another 40 on Monday. I think it hit 238 on Monday at the open.